If total revenue exceeds fixed cost, a firm
A) should produce in the short run.
B) has covered its variable cost.
C) is making short-run profits.
D) may or may not produce in the short run, depending on whether total revenue covers variable cost.
Answer: D
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From 1970 to 2010, as a fraction of GDP, the quantity of money that people and businesses have held has been
A) independent of people's use of credit cards. B) increasing. C) decreasing. D) fluctuating erratically. E) changing only as the interest rate changed.
Open market operations tries to target
A) the Federal government budget deficit. B) product prices. C) stock prices. D) the federal funds rate.
A single bank is limited in its ability to create money because
a. loan recipients usually take the proceeds of the loan in cash. b. the FDIC will not permit it to create money unless the loans are guaranteed by the federal government. c. the money loaned will probably be deposited in another bank. d. federal legislation prohibits banks from creating money except to finance international trade.
A consumer is willing to purchase a product up to the point where
A) he spends all of his income. B) the marginal benefit is equal to the price of the product. C) the quantity demanded is equal to the quantity supplied. D) he is indifferent between consuming and saving.